Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 80,000 240,000 Prime costs $7,200,000 $27,840,000 $35,040,000 Machine hours 80,000 400,000 480,000 Engineering hours 400 3,600 4,000 Receiving orders 600 Inspection hours 1,600 2,400 200 800 800 Overhead costs: Machining Engineering Receiving Inspecting products $7,200,000 1,800,000 264,000 312,000 Required: 1. Calculate the four activity rates. Machining rate 15 per machine hour Machining rate 15 per machine hour Engineering rate Receiving rate Inspecting rate $ 450 per hour 330 per order 130 per hour 2. Calculate the unit costs using activity rates. Round your answers to the nearest cent. Unit cost Basic 109.4 X per unit Advanced 149.4 X per unit Calculate the overhead cost per unit. Round your answers to the nearest cent. Overhead Cost Basic 19.4 x per unit Advanced 33.4 X per unit 3. If consumption ratios instead of activity rates were used to assign costs instead of activity rates, show the cost assignment for the inspection activity. Cost assignment Basic 104,000 Advanced 208,000